LESCO's 3Q sales up, net income down

Golf Course News, Jan 2002

CLEVELAND - LESCO has announced record sales of $144.1 million for the quarter ended Sept. 30. In the third quarter of 2000, the company had sales of $139.6 million. Net income for the quarter, however, was $300,000 -- down from $4.2 million a year ago.

The company cited the rising cost of raw materials, a competitive price environment and the attacks of Sept. 11 as reasons for the earnings downturn. Sales for the golf division in the quarter were flat, but down 17 percent in September. As a result of weak operating results, the company is negotiating temporary relief from its lenders and is pursuing the refinancing of debt on a longer-term basis.

Presidentand CEO Bill Foley islooking for better returns in the fourth quarter. "In response to increased market competition and pressures on margins, we have continued to reduce costs," said Foley. "We have reduced our headcount by 60 people and discontinued 1,500 slow moving products in 2001. We also expect to benefit from increased sales and the lower urea costs that we have seen in the fourth quarter."